Money & Banking

AT-I: Court postpones hearing

Mumbai | Updated on March 11, 2020

RBI to reconsider bond write-off

The Bombay High Court hearing on the write-off of YES Bank’s alternative tier-I (AT-I) bonds has been postponed on an appeal by bondholders as the RBI has agreed to reconsider its decision.

The bond holders have proposed to convert a portion of the ₹8,900-crore AT-I bonds into equity.

Nippon India Mutual Fund and Axis Debenture Trustee had filed a petition on Monday in the High Court against the RBI decision to write down AT-I bond as part of the draft reconstruction plan for YES Bank. Nippon India has an investment of ₹1,800 crore through six of its schemes.

Coupon payments

The RBI is expected to consider a proposal to allot equity shares to bondholder after they take an haircut of 80 per cent on bond value, according to sources.

Earlier, Axis Trusteede, the debenture trustees for YES Bank’s AT-1 bond, had also suggested that the central bank suspend coupon payments and delay the exercise of call option till the financials of the bank improve.

Published on March 11, 2020

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